They have by far the best manager in the tournament. They're hosting the whole thing. And they have an exceptional first 11, with good depth as well. I feel like some of their most important players are also somewhat underrated.
Rüdiger and Schlotterbeck have both been amongst the best defenders in the world this past season. Havertz is an incredible #9 but hasn't always played there at Arsenal. He has impressive G/A when playing there, though. Kroos is still one of the best #8s. He can dictate any game, and almost every pass he makes is the perfect decision. Wirtz and Musiala are among the biggest U21 talents in the world. Losing Gündogan is the biggest reason why City weren't as strong this year than before. And on top of all these player, their core still involves the likes of Neuer, Kimmich, Tah, Mittelstadt, Sané, etc.
The last Euros and World Cup were a failure for them, but this time I think it's very clear that this is a different Germany side who are going to the semis at the very least.